In a parliamentary response, Deputy Prime Minister and Monetary Authority of Singapore (MAS) Chairman Gan Kim Yong outlined how limited purpose bank accounts (LPBAs) provide essential payment services to people denied banking services. Local banks will offer these accounts to Singaporeans and permanent residents whose existing accounts are closed or whose applications for new accounts are rejected, except in very limited circumstances. LPBAs have fewer features to reduce the risk of illicit use and are subject to safeguards such as enhanced transaction monitoring. Exceptions to access include individuals who have repeatedly allowed their accounts to be misused for illicit activities or who do not cooperate with banks’ required checks. Account closures or refusals follow banks’ assessments of abuse risks and usually involve serious criminal convictions or investigations, or strong suspicions of involvement in scams, fraud, money laundering or terrorism financing.
MAS outlines limited purpose bank account access for Singaporeans and permanent residents denied banking services
Monetary Authority of Singapore Chairman and Deputy Prime Minister Gan Kim Yong outlined in Parliament how limited purpose bank accounts provide essential payment services to people denied banking access. Local banks will offer these accounts to affected Singaporeans and permanent residents, with restricted features and safeguards such as enhanced transaction monitoring. Limited exceptions include repeated account misuse and failure to cooperate with banks’ required checks.